By PowerBuy // 14 November 2014 // Related Categories: Tips

Mobile payment systems have been around for years without gaining much traction, but this is changing with the release of the iPhone 6’s Apple Pay.

Apple’s latest iPhone and Watch both use Near Field Communication (NFC), a well-established technology that allows smartphones to connect and share information with point-of-sale computers (and other phones).

NFC technology has the potential to do away with credit cards and all those loyalty cards that currently make our pockets and handbags bulge. With your phone running a secure application that knows your account details, you simply bring the phone into close proximity to the reader in the store and the transaction is complete.

Is NFC safe?

Many of us are understandably concerned that using NFC-enabled devices to make mobile payments will open them up to fraud. The good news is that NFC is a proven and tested technology.

As a starting point, NFC mobile payments use similar security features as the existing contact-less payment cards like PayPass. On top of that are additional layers of security to comply with “post-issuance activation of an NFC payment application”. The user is validated by the credit card company and is issued with a code that is stored on the phone’s SIM card.

If you lose your phone then these days you can remotely lock it or call your Telco to bar your account and SIM. Much the same blocking process as when you lose your credit card.

No digital system is 100% safe against hackers but with these additional security features NFC payments are as safe as current credit card and PayPass arrangements.

How new is NFC?

NFC has been around for a while however not enough people have been using NFC so the retailers have not bothered to invest in the equipment. That is changing as retail chains start to deploy point-of-sale NFC readers.

Across the globe Apple currently has around 800 million registered iTunes accounts, many of which include credit card details and to put these figures into perspective, Apple has more than double the number of credit cards on file than both Amazon and PayPal combined.

 

This article was originally written by The Conversation. Read the original article.

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